Further BT Job Cuts 15,000, this year and more in 2010

Things continue to look gloomy for BT. This mornings announcement seems to have been a bigger surprise than had been expected.

BT suffered a 40% slump in pre-tax profit during the fourth quarter, forcing the firm to slash its dividend and announce plans to axe another 15,000 jobs. Fourth quarter pre-tax profit plunged to £429m from £714m a year ago and by 21% for the full year to £2.08bn.

The firm also reminded us that it had cut 15,000 posts in the last 12 months, 5,000 more than they said they would. This morning they joined Banks & Miners amongst the FTSE's largest fallers.

BT's stated aim is to cut the jobs through natural wastage, non replacement and voluntary redundancy and had no plans for compulsory lay-offs. With some suggestion that it'll be even more agency staff going.

Next Generation Communications platforms, Ethernet-based solutions, unified communications applications, and International Private Leased Circuit (IPLC) are key are to BTs ability to compete at home and abroad. BT cannot afford to fall behind the innovation curve

It seems to me that the right thing to do no matter how painful is to follow C&Ws lead - look at the skills they absolutely must have in their company and organise their people accordingly.

BT to shed 10,000 jobs

Less than 24 hrs after Virgin Media announced they would be shedding a 2000+ jobs. BT have announced further 10,000 job cuts with contractors out the door first.

I say further because anyone who follows BT will be aware that they have already reduced their global workforce by 1/3rd, down from nearly 250,000 in 2006. In October 2007 a representative of the Now Connect Union, which represents BT middle management, suggested that only the generosity of the voluntary redundancy packages avoided a strike. Unfortunately the result of that generousity is that some highly experienced engineers and network designers took the deal and left BT Global Services, the division now pulling BTs numbers down.

A BT insider recently said to me "...it's like 2001 again, lots of people in the office looking busy; waiting for the storm to hit!"